MANAGING THE NATIONAL CREDIT ACT (NCA)

(Short Course: Non-credit bearing)

national credit act managing

The National Credit Act No 34 of 2005 was passed by Parliament on the 10th of March 2006. It is designed to achieve a system of regulation that will apply to all credit activities, thereby ensuring that all credit providers and credit consumers are treated equally.

Broadly, the Act aims to reduce reckless credit behaviour, both by credit providers and consumers and the level of over-indebtedness in South Africa.

What will the NCA course enable you to do?

Successful candidates qualify for a NCA card, which is a legal requirement for most of the above industry players.

Who should Apply?

  • Credit providers (providers of personal loans, HP agreements, credit cards and revolving credit)
  • Credit Bureaus
  • Debt Counsellors

Content

Learning Unit 1
An overview of the NCA

  • Explain the purpose of the NCA.
  • Describe the main functions of the following role players:
    • National Credit Regulator
    • The National Consumer Tribunal
    • Credit Bureaux
    • Debt counsellors
    • Payment distribution agents
    • Dispute resolution agents
    • Credit providers and agents
    • The South African Credit and Risk Reporting Association (SACCRA)
    • Describe a consumer in terms of the NCA.

Learning Unit 2
Scope and application of the NCA

  • Explain what a credit agreement is.
  • Classify the different categories of credit agreements.
  • Understand who and what the National Credit Act applies to.
  • Describe the credit agreements that the NCA does not apply to.
  • Explain the limited relevance of the NCA with regards to credit agreements in respect of which the consumer is a juristic person, as well as limit relevance to incidental credit agreements.

Learning Unit 3
Types of credit agreements

  • Distinguish between the different types of credit agreements, including:
    • Credit facility
    • Credit transaction
    • Credit guarantee
    • Combination of agreements

Learning Unit 4
Rights of consumers

  • Understand the consumer’s right with regards to credit.
  • Understand the consumer’s right with regards to confidentiality, personal information and credit records.

Learning Unit 5
Credit and affordability assessment

  • Explain the concept of over-indebtedness and reckless credit.
  • Recognise the process and requirements pertaining to credit and affordability assessments.

Learning Unit 6
Credit documentation

  • List the credit agreements that are prohibited in terms of the NCA.
  • Describe the provisions that are not allowed to be included in a credit agreement.
  • Explain the requirements for small, intermediate and large quotations as set out in the NCA.
  • Describe the information that must be contained in small, intermediate and large credit agreements.
  • Understand the provisions of the NCA in terms of the amendment and termination of a credit agreement.
  • Explain the requirements that the NCA stipulates for the delivery of statements of account to consumers.

Learning Unit 7
Rates and fees

  • Describe the permissible rates and fees associated with a credit agreement.
  • Understand the fees that may be added to the principal debt of unsecured and short-term credit transactions.
  • Explain the rules regarding the cost of credit, principal debt, initiation fees, service fees, interest and credit life insurance.
  • Calculate initial fees, service fees, interest and credit life insurance according to the requirements as set out in the NCA.
  • Understand the requirements w.r.t default administration charges and collection costs.
  • Explain the requirements regarding rates and fee increases and the notice periods applicable thereto.
  • Understand the statutory in duplum rule.

Learning Unit 8
Data submissions

  • Describe the credit provider’s data submission obligations i.t.o. Section 71A.
  • Understand the credit provider’s data submission obligations i.t.o. Regulation 19(13), fees that may be added to the principal debt of unsecured and short-term credit transactions.
  • Explain the effect of non-compliance to the NCA’s data submission requirements.
  • Describe the process of submitting data to the Data Transmission Hub, including relevant timelines.
  • Understand the South African Credit Risk Reporting Association on-boarding process.
  • List the data submission requirements i.t.o the format and layout, as well as requirements as set out in regulation 19(5).
  • Describe the high-level adverse information listing process.

Learning Unit 9
Statutory reporting

  • Understand the requirements for the compilation and submission of the following reports / returns:
    • Compliance report
    • Statistical returns
    • Annual financial statements
    • Financial and operational return; and
    • Assurance engagement report

Learning Unit 10
Miscellaneous matters

  • Explain the collection and repayment practices and debt enforcement by repossession or judgement.
  • Understand the obligations and requirements regarding marketing and advertising practices, including:
    • Negative option marketing;
    • Direct marketing and sale of credit at home or work;
    • Advertising practices; and
    • The marketing options register.
  • List the credit provider’s obligations and requirements relating to the keeping of registers, record retention and registration renewal.
  • Describe the types of offences set out in the NCA and the penalties that may be imposed on a person convicted of an offence.
  • Understand the requirements of – and process of desktop audits and investigations that may be conducted by the NCR.

Learning Material

Students will have online access to their study material which will include a study guide, self-assessments and relevant additional resources.

Fees

Please contact our office for more information: help@mbse.ac.za

Dates

Applications are open throughout the year.

Accreditation and Certification

Certification

  • Learners will receive a MBSE certificate after successful completion of the course.
  • They will also receive a NCA card that is necessary for Finance and Insurance brokers (F&I).

Method of training

Online learning.

Admission Requirements

No admission requirements.

How to Apply?

Applications are open throughout the year. The learner will receive the learning material online after registration and proof of payment is sent to our office.

Assessments

  1. After studying the material, the learner will complete an online Final Assessment.
  2. 60% is required to be competent.
overview

Starting Date: 
All year

Applications:
Applications are open throughout the year.

 
Method of Training
Online learning

Course Duration
Estimated 12 Hours

Admission Requirements
No requirements

Fee:
Please contact our office for more information:  help@mbse.ac.za

Enrol today

The National Credit Act No 34 of 2005 was passed by Parliament on the 10th of March 2006. It is designed to achieve a number of objectives, most of which are to benefit and protect the consumer.

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